South Korean banks have begrudgingly extended contracts with local exchanges until September while thorough screening is ongoing
South Korean banks are reluctant to renew contracts with local cryptocurrency exchanges, Business Korea reports.
So far, major crypto trading platforms are being screened by their banking partners to make sure that they are reliable and safe enough.
Upbit and Bithumb, the two biggest crypto players in South Korea, extended their current partnerships until Sept. 24, on condition that they report real-name accounts to the country’s financial intelligence unit to prevent money laundering and illicit fund flows.
Since exchange partnerships do not bring substantial profits, banks are unwilling to take on the responsibility of dealing with the potential risks that they entail.